NZ Oil & Gas (NZO)

[Coles Killer]

Yes tax efficient.
Not good as it enables Zeta to proportionally increase their shares.
Another capital return would be fairer and still tax efficient

If Zeta want to increase their influence over the company and decrease the headcount in the office, in this present oil price climate, that's not such a bad thing. Why shouldn't this company scale back to a CEO + the minimum people needed to manage their investments (they are not operators) when it doesn't make sense to do any drilling?

[Bella52]

They are scaling back a bit, Bay gone, Houston gone, + couple of others over the last year from what I hear. Knight does keep saying they add value by having staff on top of Origin and AWE but yet to see big gains.

[trader_jackson]

https://www.nzx.com/companies/NZO/announcements/272402

Fantastic news! This should power the share price higher for sure!

[notie]

https://www.nzx.com/companies/NZO/announcements/272402

Fantastic news! This should power the share price higher for sure!

A 34% increase in reserves at Kupe! Wow it sounds great news....but NZOG only holds 15% of that field, so the reality is they have added 5.9PJ of gas and 300,000 barrels of condensate.

I think most of this will get burnt up in the high overheads this company has.

The people that will be happy are the operator Origin (50% share) and Genesis (31%)

I guess it is situation normal at NZOG and they will go back to stumbling around in the dark

[jonu]

A 34% increase in reserves at Kupe! Wow it sounds great news....but NZOG only holds 15% of that field, so the reality is they have added 5.9PJ of gas and 300,000 barrels of condensate.

I think most of this will get burnt up in the high overheads this company has.

The people that will be happy are the operator Origin (50% share) and Genesis (31%)

I guess it is situation normal at NZOG and they will go back to stumbling around in the dark

At current poo it is worth approx 12 million nzd to them based on the 15% holding according to my calcs. Not to be sneezed at Notie.

[trader_jackson]

A 34% increase in reserves at Kupe! Wow it sounds great news....but NZOG only holds 15% of that field, so the reality is they have added 5.9PJ of gas and 300,000 barrels of condensate.

I think most of this will get burnt up in the high overheads this company has.

The people that will be happy are the operator Origin (50% share) and Genesis (31%)

I guess it is situation normal at NZOG and they will go back to stumbling around in the dark

Yes they probably will go back to stumbling around with more 'great incentives' like share buy backs rather than looking for cheap take overs..

But good news none the less, and for GNE, well even better news (as they have greater shareholding). I'm surprised their announcement wasn't price sensitive to be honest...

[notie]

Yes they probably will go back to stumbling around with more 'great incentives' like share buy backs rather than looking for cheap take overs..

But good news none the less, and for GNE, well even better news (as they have greater shareholding). I'm surprised their announcement wasn't price sensitive to be honest...

Over the next 15-20 years of the field life.....discount it for production costs and other things that could go wrong in that time, then it really doesn't add up to a whole lot

[digger]

Over the next 15-20 years of the field life.....discount it for production costs and other things that could go wrong in that time, then it really doesn't add up to a whole lot

Noe notie turn it around and I wonder what you would say. Lets state we had a 34% decrease in reserves--would you then still say it is of little importance???

[fish]

Over the next 15-20 years of the field life.....discount it for production costs and other things that could go wrong in that time, then it really doesn't add up to a whole lot

production costs?
unmanned production platform and no extra drilling.

[notie]

Noe notie turn it around and I wonder what you would say. Lets state we had a 34% decrease in reserves--would you then still say it is of little importance???

That's just my point, it wouldn't manifestly change much for nzog if those reserves went down either.

As for production costs, there is a very large expensive Kupe processing plant which costs money to run, then there are well and pipeline maintenance costs.

NZOG would be much better going out and doing something like drilling wells if they really want to replace reserves, but seem more than happy to crow about a field discovered in 1986, and of which they only own 15% of.

This is all part of the good news story for the upcoming AGM about how active they have been assessing M&A opportunities and lifting their reserve numbers.

I wish you all luck

[skid]

It would take a pretty active imagination to figure a way that 34% more oil than expected in a well you own part of is a bad thing.

[dodgy]

It would take a pretty active imagination to figure a way that 34% more oil than expected in a well you own part of is a bad thing.

Good afternoon skid and all.
This has nothing to do with the current espoused upgrade , it all relates to us holders investments dying by way of 1000 cuts. Having followed and owned for well over 25 years and also followed this stock on sharetrader one can virtually take the markets temperature but correlating the number of entries posted here e.g positive company performance means increased chatter. Obviously most participants agree with Notie as this diminished thread like the company is walking blindly into the setting sun. I have attended meetings and briefings but are no longer able. I ask that any attendee address the meeting with two questions. 1. When will the company start to cut its cloth and hack away at overheads more suited to a junior partner subcontracting work out when needed ? 2. When will a dividend policy be reinstated but based on a percentage of profit basis along with the dropping of the mysterious and completely useless buyback intention ?
If someone can put these forward I would be thankful and the thread will be far better informed.
Have a great evening
Regards
dodgy (owner and somewhat hogtied shareholder)

[skid]

Your absolutely right dodgy.I have been out of this share for a long while now and they have certainly not been hitting many performance bulls eyes.But even a useless company is better off with more oil than they thought in the ground.That was the only point i was making.
One thing for sure--It aint easy finding that stuff,even for well run companies.There have certainly been tons of disappointments for a number of companies,and now with oil cheap its not a pretty picture.

[dodgy]

Your absolutely right dodgy.I have been out of this share for a long while now and they have certainly not been hitting many performance bulls eyes.But even a useless company is better off with more oil than they thought in the ground.That was the only point i was making.
One thing for sure--It aint easy finding that stuff,even for well run companies.There have certainly been tons of disappointments for a number of companies,and now with oil cheap its not a pretty picture.

Hi skid
You are quite right overall and I really liked your play with "well run" -intentional and apt for for an aspiring oil company I guess.
Regards
-dodgy (OWNER and shareholder - yes a little beaten down with this stock).

[arjay]

Noe notie turn it around and I wonder what you would say. Lets state we had a 34% decrease in reserves--would you then still say it is of little importance???

Ironically, although true to form, the announcement of a 34% increase in reserves has been greeted with a shrug from the SP, whereas had it been a 34% decrease we would probably have seen 10c knocked off.

[trader_jackson]

Ironically, although true to form, the announcement of a 34% increase in reserves has been greeted with a shrug from the SP, whereas had it been a 34% decrease we would probably have seen 10c knocked off.

Really it should have put a rocket under the share price, and boosted GNE's share price by significantly more than 0.8%.

I think people could be more interested in the meeting tomorrow, and overall people have 'had enough' of NZO and these 'great' things that seem to happen (or be about to happen) and not actually eventuate in great profits due to some unknown reason (this has been an unfortunate trend at NZO in the past few years - over promise, under deliver)

[Carpenterjoe]

How is this company only worth 145mil, 100mil in the bank. Un expected Q1 cash flow of +16mil. What have I missed? How are these guys cooking the books?

[fish]

How is this company only worth 145mil, 100mil in the bank. Un expected Q1 cash flow of +16mil. What have I missed? How are these guys cooking the books?

With assets of over $1 a share they don't need to cook the books.
Great cash flow,great prospects.
The market hasn't forgotten the past-money squandered in the Mediterranean,pike river explosion etc.
I feel they have learnt from their mistakes and are treading a more appropriate path.
I am biased but happy to be one of the top 20 shareholders .
Good things can arise from past failings.
Andrew Knight is steering the company on the right path.
People have reason to be wary of Zeta but its easy to see why they want to increase their shareholding when the buyback starts

[skid]

I haven't been keeping up with this company of late--what are the great prospects you refer to ?(no sarcasm intended)

As far as assets go PPP had a similar situation and it became one of my great teachers. (The kind of lesson you learn from getting burnt)

[fish]

I haven't been keeping up with this company of late--what are the great prospects you refer to ?(no sarcasm intended)

As far as assets go PPP had a similar situation and it became one of my great teachers. (The kind of lesson you learn from getting burnt)
Sorry you got hurt with PPP.It was always high risk and they stupidly invested nearly all in one drill.
Nzo has $103 million in the bank and net cash flow of 16 million last quarter.
This is at a time of low oil prices.
Production costs of kupe for instance is relatively fixed so an increase in reserves-as just announced but known for sometime equates to a big increase in prospective profits.
Indonesia is starting production.
Clipper is a really exciting prospect.
You really need to read todays quarterly report and the annual report.
NZO has fingers in so many pies-unlike ppp.
This derisks the company compared to ppp

[banter]

NPAT 20cps if you annualise this quarter's earnings.

Admin costs $6million for the quarter - surely that can be slashed.

Imagine of oil prices go up, as the always have done in the past from comparable lows.

I bought yesterday and again today.

[tim23]

Anyone go the AGM today?

[skid]

Sorry you got hurt with PPP.It was always high risk and they stupidly invested nearly all in one drill.
Nzo has $103 million in the bank and net cash flow of 16 million last quarter.
This is at a time of low oil prices.
Production costs of kupe for instance is relatively fixed so an increase in reserves-as just announced but known for sometime equates to a big increase in prospective profits.
Indonesia is starting production.
Clipper is a really exciting prospect.
You really need to read todays quarterly report and the annual report.
NZO has fingers in so many pies-unlike ppp.
This derisks the company compared to ppp

It (PPP)was a learning experience--Im out of oilers now but was curious as i was pretty involved before -(have freinds who are still invested though)-cheers for the info derisks the company compared to PPP--Thats not saying much:)------good Luck (but just remember the dangers of buying in a downtrend) you will have to keep a close eye on this (those knives are razor sharp atm!)

[trader_jackson]

http://www.stuff.co.nz/business/73502555/nz-oil--gas-cuts-costs-as-it-promotes-100-million-drilling-campaign

Interesting (and good I think) article...

[notie]

http://www.stuff.co.nz/business/73502555/nz-oil--gas-cuts-costs-as-it-promotes-100-million-drilling-campaign

Interesting (and good I think) article...

Kaheru-they won't drill it as Tag Oil don't have the money and NZOG doesn't have the guts to go it alone with Beach.

Barque-they can make all the nice noises about this they want, but not a snowballs in hell that they will farm it out in the current market

[airedale]

Anyone go the AGM today?

Perhaps Digger will report.

[digger]

Perhaps Digger will report.

I did not go .

[fish]

I did not go .
Hi Digger,
Trust you are keeping well
After reading the quarterly report and the agm how do feel about the current position of nzo
We all (with notie and balance exceptions value your wisdom)

[digger]

Hi Digger,
Trust you are keeping well
After reading the quarterly report and the agm how do feel about the current position of nzo
We all (with notie and balance exceptions value your wisdom)

Hi Fish.
Just yesterday I was reading[ now gone] on Bloomberg that only 5 of 72 oil companies were cash flow positive. NZOG only made a full year loss because of a reserve right down from falling oil prices. NZOG is one of the very few world oil companies that are still cash flow positive. To me that says it all and eventually that fact will dominate all other considerations. When you just compare NZOG with all oil companies it is doing very well. Also think that just now the management is showing top leadership by holding off the buyback and also holding off further acquisitions. The time will come when distressed oil assets will be forced on the market and that is when I hope we make our move. Lots of world oil companies have been able to struggle on up to now as they wisely[in hindsight] had forward cover. It is just this month that I see about 80% of these companies that have enjoyed this forward cover will just now have to face the new world oil reality. About half of the shale oil was not cash flow positive when oil was $100 so now the sh-t is really starting to hit the fan.
The oil world is going to look vastly different in just a years time to what it looks like now.
I am not in favor of any drilling but want the drilling on Wall street as the saying goes.
Cheers all and hang in there.

[Joshuatree]

Appreciate your dot joining digger.Great for NZO to be able to zig when most other oilers are zagging. cheers JT

[BigBob]

A NZO director just spent about $178k on market....

It's gotta be a good sign.... Hopefully....

https://www.nzx.com/files/attachments/225595.pdf

[Carpenterjoe]

A NZO director just spent about $178k on market....

It's gotta be a good sign.... Hopefully....

https://www.nzx.com/files/attachments/225595.pdf


yip, another tick, bring on buy backs, increasing oil price, strength in the USD, maybe find some more oil and the SP could be on the move.

[digger]

A NZO director just spent about $178k on market....

It's gotta be a good sign.... Hopefully....

https://www.nzx.com/files/attachments/225595.pdf

Also means in the short term no major announcements will be taking place that the market does not already know about,as otherwise director buying would be deemed insider trading. But yes in the longer term it does at long last start to look better.
About a year ago I made my prediction that things would start to come together by June 16. I will stick to that. A lot of oil producers are hurting now and more so in the coming months. Good to see NZO holding off for now with more acquisitions as the future does look better on that front.

[trader_jackson]

https://www.nzx.com/companies/NZO/announcements/274271

Another director buying?

Can only be good news long term...

[pak]

I have to agree, it's made me stand up and take notice TJ. However I believe there are still head winds on global oil prices though. Iran for one are chomping at the bit to inject a mass of oil on an already overflowing oil market, surely that will hurt a few companies if they're not already.

Something must be cooking in the background though with those directors buying in hmmmm.

[Balance]

https://www.nzx.com/companies/NZO/announcements/274271

Another director buying?

Can only be good news long term...

Conversion of partly paid shares.

Don't get too excited.

[digger]

Conversion of partly paid shares.

Don't get too excited.

Balance me old mate,your back. In a different mood I see as we agree that the shares in question were highlighted some 4 or 5 weeks ago as options that the company would buy back from the staff. These options have to be converted first to fully paid shares B4 they can be bought and then cancelled by the company.

[Balance]

Balance me old mate,your back. In a different mood I see as we agree that the shares in question were highlighted some 4 or 5 weeks ago as options that the company would buy back from the staff. These options have to be converted first to fully paid shares B4 they can be bought and then cancelled by the company.

It is what it is, Digger.

Gotto keep the young bucks in check in case they mistake mutton for lamb!

[trader_jackson]

It is what it is, Digger.

Gotto keep the young bucks in check in case they mistake mutton for lamb!

True, but he did use his own money (ie put his money where his mouth is... right?)

[Bella52]

It is what it is, Digger.

Gotto keep the young bucks in check in case they mistake mutton for lamb!

Balance you're so negative you can't see the hills because of your dark clouds.

They are party paid shares so he will have had to pay the unpaid balance.

[Balance]

Balance you're so negative you can't see the hills because of your dark clouds.

They are party paid shares so he will have had to pay the unpaid balance.


https://www.nzx.com/files/attachments/222332.pdf

I assume this is meant to boost the share price... Thoughts?

I feel very patient (like the ole yoda) for some reason this morning so suggest you read the release as it will answer the question about directors putting their own money into NZO.

Freeloaders do not pay for champagne and caviar when they can get them free. If you are lucky, they may pay for their beers, reluctantly and it is more likely to be a Hagen than a Craft beer! This much I have learnt from observing NZO (and PRC) over the years. :D

PS. Yoda sighs often - I don't.

[Crackity]

I'm aware of your antipathy towards this company Balance but from a TA and FA it could be moving to a BUY ....

and....Director clearly buying on market







file:///page1image25304





Indirect


file:///page1image25304



The shares are held by RGH HoldingsLimited, a company that Rodger Finlay isthe sole director and a shareholder of.






26 November 2015 – 1 December 2015






387,814






Ordinary Shares






1,171,761






0






NZ$535,414.31 (NZ$ 0.457 per share)






1,559,575






On-market trades






























Biggest drawback 1 - the company could blow their large cash hoard on something silly (like a well) rather than shareholders.















Biggest drawback 2 - management ....

[BlackPeter]

A holding controlled by Roger Finley just put more than half a million dollars into NZO shares - purchased on market (at an average price of 45.7 cents):

https://www.nzx.com/files/attachments/226144.pdf

Agreed - it is just an indirect interest... but would he allow that if he wouldn't believe that the share is currently undervalued?

Discl: holding (a small parcel);

[Balance]

http://www.bloomberg.com/news/articles/2015-12-02/as-opec-meets-world-oil-traders-see-prices-stagnating-into-2017

2 more years of pain for oil producers.

[BlackPeter]

http://www.bloomberg.com/news/articles/2015-12-02/as-opec-meets-world-oil-traders-see-prices-stagnating-into-2017

2 more years of pain for oil producers.

Maybe - maybe not. Just wondering - did any of these clever analysts predict 18 months ago that the oil price will crash within months from above $100 to $40? Of course not - the only thing they can do is extrapolate based on known conditions ... and the decision of the Saudis to open the taps without regards to the price was unknown to them at that stage.

Just saying - nobody knows how the oil price looks like in say 6 or 12 months from now ... me included.

What is likely to keep the price down for some time are:

> oil stores are currently full;

> everybody (well, too many producers anyway) seem to be hell bend to push still more surplus oil into the pipeline (so to speak)

> Iran stands by to increase the world oil supply (given the removal of sanctions)


What might change the trend?

> ISIS can only continue their terror regime if people continue to buy their cheap oil. How difficult would it be for Russians or US ... if they really want to fight ISIS ... to destroy the oil wells in ISIS territory? Oil wells can't really move or disappear ... they sit there like a duck waiting for somebody who really wants to fight the terrorists instead of just making noises and throwing bombs on empty training camps ...

> If the oil price stays for the next 2 to 3 years below $50, than Saudi Arabia will be bankrupt unless they significantly reduce their "social" spending. Latter would however piss off the suppressed masses - and the Saudis probably don't want to create the ground for another Syria / Lybia or Iraq on their own soil. Which means, they are likely to support an oil price increase before their money runs out.

> Russia is hurting like hell given the current oil price. They might find that they have here a common interest with Saudi Arabia (to get the oil price up) ... and might be able to negotiate a reduction of the global oil glut by playing in Syria / Iraq on the Western side.

> Shale oil fields have a short lifespan ... and for some funny reason not too many companies did invest over the last 12 months or so into new projects. This will reduce at least the US / Canadian oil supply over the next 12 months or so.

> global oil demand is as high as never before ... and keeps rising (low oil price help in that regard). People buy thirstier cars and the developing economies (not dependant on selling oil) get a shot into the arm thanks to low energy costs.


So - yes, if we look at the latest monthly IEA report (https://www.iea.org/oilmarketreport/omrpublic/), than it looks like we will have at least for another 12 months or so more oil supply than demand. However - the oil price didn't ask the analysts before crashing ... and I doubt it will ask the analysts before rising again.

Long term (3 years plus) I think there is no question that oil will go up again for some of the reasons listed above. Short and mid term it is up to everybody's best guess ... but I don't think that the analysts know in that regard more than mine or anybody elses crystal ball. In my view are oil companies with sufficient funds to survive the next 3 years or so worth a look as a long term investment. Obviously - there will be differences between oilers (good management would help) - and sure, there might always be a still better time to buy in.

Discl: hold some NZO and TAP(ASX); As usual - DYOR;

[BlackPeter]

gosh - this was fast. Looks like Saudi Arabia makes already noises to negotiate about output cuts. The following snippet comes from "Wall Street breakfast at Seeking Alpha":


Saudi Arabia has thrown down a challenge to big rival oil producers ahead of tomorrow's OPEC meeting, saying it would back output cuts as long as they were supported by countries both inside and outside the cartel. The move indicates a further softening in tone from the world's largest oil exporter which led the cartel's landmark shift in policy a year ago (arguing that keeping the taps open would pressure high-cost rival producers). Although oil prices settled below $40 a barrel on Wednesday, crude futures are now up 1.5% at $40.53/bbl.

Not sure whether they will succeed this time around (though they might), but mid term I am sure the pressure on all oil producers to stop this ridiculous self mutilation will increase.

[skid]

gosh - this was fast. Looks like Saudi Arabia makes already noises to negotiate about output cuts. The following snippet comes from "Wall Street breakfast at Seeking Alpha":



Not sure whether they will succeed this time around (though they might), but mid term I am sure the pressure on all oil producers to stop this ridiculous self mutilation will increase.

Maybe the Saudis spat with Russia has softened a bit? I believe thats what started this (also quite a few US Fracking out fits have hit the wall)

[Balance]

gosh - this was fast. Looks like Saudi Arabia makes already noises to negotiate about output cuts. The following snippet comes from "Wall Street breakfast at Seeking Alpha":

Not sure whether they will succeed this time around (though they might), but mid term I am sure the pressure on all oil producers to stop this ridiculous self mutilation will increase.

OPEC is a den of thieves who cheat on everything. Who will be the first one to willingly sacrifice output so that one of the fellow thieves take its market share?

Oil price going up and down in recent months has the day traders in ecstasy - reacting to every snippet of news which are played up and played out.

Read about the UK targeting ISIS oil installations last night? Big cuts to cheap oil from the scumbags which have been funding ISIS campaign apparently.

[BlackPeter]

Read about the UK targeting ISIS oil installations last night? Big cuts to cheap oil from the scumbags which have been funding ISIS campaign apparently.

Frightening, isn't it? Imagining that they might get their strategic ideas from reading this thread ;)?

[notie]

Frightening, isn't it? Imagining that they might get their strategic ideas from reading this thread ;)?

But what has this got to do with NZOG?

A company with very high overheads
Non operated on all their production, so at the mercy of the operator's decisions (Kupe is a classic example)
Kaheru needs drilling, but their partner TAG has no money
The company's decisions are now made by Zeta and this might not be in the interests of the other shareholders.
Unable to farm out Barque and clearly Anadarko, Shell and Origin (in the adjacent permits) are not interested

There has been a lot of talk from NZOG, but little real achievements. Oh there was that large investment in Pike River

[BlackPeter]

But what has this got to do with NZOG?

A company with very high overheads
Non operated on all their production, so at the mercy of the operator's decisions (Kupe is a classic example)
Kaheru needs drilling, but their partner TAG has no money
The company's decisions are now made by Zeta and this might not be in the interests of the other shareholders.
Unable to farm out Barque and clearly Anadarko, Shell and Origin (in the adjacent permits) are not interested

There has been a lot of talk from NZOG, but little real achievements. Oh there was that large investment in Pike River

What do you mean - oil price not material for NZO?

I don't think anybody was contesting that there are other critical factors as well, and I absolutely agree - some do not look good. However - if you really want to indulge in the PRC story again - why don't you just re-read in a quiet month all the old threats and posts for yourself and leave the rest of us to look into the future?

[notie]

you think NZOG has a future with Zeta in control?

Their future might be your alternate universe

[BlackPeter]

you think NZOG has a future with Zeta in control?

Their future might be your alternate universe

Well, last time I checked was ZETA a corner stone share holder, but not in control. I agree that it feels that there might be some conflicts of interest in the board and I don't know, whether they deal with that always in the most pristine fashion. Actually - I think that the current share price is a reflection of the market feeling, caused as well by these conflicts.

Having said that - NZO holds a number of valuable oil and gas rights and has as well plenty of cash. NTA was last time I checked at 74 cents (and this was after the big write off to reflect lower oil prices). Analyst consensus view is 70 cents and somewhere between outperform and buy.

Are the analysts always right? No ... though in my experience they are more often right than wrong (maybe with the exception of Edison;)). However, I don't see how an increased oil price (and this is what we talked about) would not benefit NZO. What exactly do you think ZETA would do with their 20+ percent? Buy (or steal) NZO assets under value?

Notie - I do appreciate a good discussion, but I fail to see what value your throw away line related to "alternate universes" would add ... is this how you try to dominate a discussion if you run out of arguments? Is it already that bad?

[notie]

apologies Peter for that remark


Well, last time I checked was ZETA a corner stone share holder, but not in control. I agree that it feels that there might be some conflicts of interest in the board and I don't know, whether they deal with that always in the most pristine fashion. Actually - I think that the current share price is a reflection of the market feeling, caused as well by these conflicts.

Having said that - NZO holds a number of valuable oil and gas rights and has as well plenty of cash. NTA was last time I checked at 74 cents (and this was after the big write off to reflect lower oil prices). Analyst consensus view is 70 cents and somewhere between outperform and buy.

Are the analysts always right? No ... though in my experience they are more often right than wrong (maybe with the exception of Edison;)). However, I don't see how an increased oil price (and this is what we talked about) would not benefit NZO. What exactly do you think ZETA would do with their 20+ percent? Buy (or steal) NZO assets under value?

Notie - I do appreciate a good discussion, but I fail to see what value your throw away line related to "alternate universes" would add ... is this how you try to dominate a discussion if you run out of arguments? Is it already that bad?

[BlackPeter]

apologies Peter for that remark

cheers, appreciated - all good.

[fabs]

OPEC is broken.
Oil prices fell below $40 a barrel on Friday after a 7-hour OPEC meeting in Vienna highlighted the deep divide within the cartel.

OPEC surprised observers by failing to agree on an official output quota, leaving production near record highs despite the massive glut keeping prices low.

"The cartel is basically broken," said Matthew Smith, director of commodity research at ClipperData, which tracks global crude shipments.

Here's how the OPEC dissension is impacting the rest of the world:

Non-Gulf OPEC countries are getting crushed

The Saudis are hell bent on continuing robust output to crowd out higher-cost producers in the U.S. and elsewhere. As of Friday, OPEC's output is effectively unchanged at near-record high levels.

Saudi Arabia was joined by a powerful group of affluent Gulf states, including Kuwait, Qatar and the United Arab Emirates.
Less-affluent OPEC members, desperate to lift oil prices stuck at $40 a barrel, had been begging for an output cut. These dissenters include Algeria, Angola, Nigeria and Venezuela, which warns oil could sink to $30 a barrel if OPEC doesn't act.
Saudi Arabia is running low on cash
Even the mighty Saudis are hurting financially from cheap oil, despite the fact that their production costs are among the lowest on the planet.
That's because the Saudis are spending heavily at home and on their military. The kingdom's budget needs higher oil prices. Without it, the Saudis could run out of cash in five years, the IMF recently warned.
Iran's parade is being rained on
One hidden motivation behind the Saudis' strategy is a desire to punish Iran. Sanctions that have ravaged Iran's economy could be lifted soon, but the oil-rich country will have to contend with extremely low oil prices.
U.S. oil jobs are disappearing
Cheap oil might great for most Americans, but it's also killing jobs in the once-booming energy sector. That's especially true in oil-centric states like Texas and North Dakota.
The mining sector, which includes oil and energy companies, has shed 123,000 jobs since the end of 2014, according to government stats. Other energy workers have been forced to take painful pay cuts.
Energy stocks are crumbling
Your retirement account is taking a hit due to the oil plunge. Big Oil stocks like ExxonMobil (XOM), Chevron (CVX) and ConocoPhillips (COP) have all taken dramatic tumbles.
The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has lost a stunning 60% of its value since hitting an all-time high in June 2014.
America's oil boom is showing cracks
U.S. oil production has been resilient in the face of cheap oil, with output remaining near all-time highs. It's a testament to the technological innovations made by the shale oil boom.
However, domestic oil output has retreated a bit in recent months and forecasters believe that trend will continue next year, as evidenced by plunging drilling rig counts.
More oil defaults loom
U.S. energy companies that piled on debt during $100 oil are now having trouble paying their loans. It's the main reason why 2015 global corporate defaults recently hit the highest level since the end of the Great Recession six years ago.
But...$2 gas is coming
American drivers are the clear winners in the oil crash. The average price of a gallon of gasoline is selling for $2.05 in the U.S., down from $2.75 a year ago, according to AAA. And OPEC's refusal to cut output only adds to the downward momentum.

[BlackPeter]

Rodger Finlay's "RGH Holdings" investing another $50k into NZO:

https://www.nzx.com/files/attachments/226420.pdf

Surely - this must be a good sign?

[Crackity]

Rodger Finlay's "RGH Holdings" investing another $50k into NZO:

https://www.nzx.com/files/attachments/226420.pdf

Surely - this must be a good sign?

Yep - one of Snoopys tests...;)

[Snoopy]

Kupe still looking good for a reserve upgrade.


From this announcement,made on 28th October 2015 on the upgrade of Kupe reserves:

https://www.nzx.com/companies/NZO/announcements/272402



Previous 2P Developed Reserves 30-06-2015Previous 2P Developed Reserves less production since 01-10-20152P Developed Reserves at 01-01-2015Percentage Change


Sales Gas (PJ)18.417.423.3 (+5.9)+34%


LPG (kilotonnes)79.975.797.4 (+21.7)+28.7%


Light Oil (millions barrels)0.80.71.0 (+0.3)+43.2%


Millions of barrels of oil equivalent (total)4.44.25.6 (+1.4)+34.7%



Reserves are classified as one of:

1/ 1P means 'Proved'.
2/ 2P means 'Proved plus Probable'
3/ 3P means 'Proved plus Probable plus Possible'

That third category looks problematic, because you could just about write anything in there and get away with it. I guess this is why most valuations I have seen use '2P'.

SNOOPY

discl: GNE shareholder, hence interest in Kupe field

[Snoopy]

SNOOPY

discl: GNE shareholder, hence interest in Kupe field


The NZOG annual report for 2015 (p11) lists for the first time the projected yield for Kupe up until 2028 (Actual and Forecast 2P Production). All energy is recorded as 'millions of barrels of oil equivalent.' So when we are looking at gas (for example), we must convert this figure into Petajoules (PJ), because that is the units in which gas is bought and sold. Despite this chart now being outdated by the October 2015 field review of reserves announcement, it is of interest nevertheless. No numbers are provided to back up the bar graph. But by careful scaling of that graphic (scale up on the photocopier several hundred percent and using some old fashioned dividers for precise measurement) I now have some figures. My starting point is to look at the gas reserves only.

From the NZOG interim accounts 2015, the conversion factor is listed as:

1PJ = 163,400 barrels of oil equivalent (booe).

For FY2015 I scaled the actual Kupe share of gas to be 0.6M booe = 600k booe.

600/163.4 =3.7PJ

That is very near to the 3.64PJ numerical figure for FY2015 (the only year a numerical figure is provided). So I am confident my conversions are ball park correct.

2028 was the year, before the October 28th upgrade, after which Kupe ceases to be economic (according to bar graph discussed previously n AR2015, p11).



YearNZOG Gas Share Extracted (PJ)


20163.4


20173.4


20183.2


20192.4


20192.4


20203.1


20213.1


20222.4


20232.7


20242.7


20251.7


20261.5


20271.1


20280.4


Total33.5



So here is the puzzle. Why is the amount of gas projected to be extracted from Kupe (33.5PJ), greater than the declared reserves (23.3PJ) even after the October 2015 reserve upgrade?

SNOOPY

[trader_jackson]

https://www.nzx.com/files/attachments/226420.pdf

Another director buying I see...
Joining what is now beginning to be a small list of management/directors that have increased their holdings recently... the question then becomes, who have been the sellers that have kept the price so depressed?

[Balance]

The directors buying must be following in the glorious investment path made by Zeta?

NZOG, PPP, CUE, PAN and the latest, Oilex.

They must know something about making investments the rest of us are not privy to? NOT!

[fabs]

washingtonweeklynews.com/guess-what-happened-the-last-time-the-price dropped below $38

[Balance]

washingtonweeklynews.com/guess-what-happened-the-last-time-the-price dropped below $38

NZO shareholders at last start questioning the directors about corporate strategy? :D

[notie]

NZO shareholders at last start questioning the directors about corporate strategy? :D

Hey don't be so pessimistic, they can buy up the remainder of Cue and the Shell assets when they come up for sale. Then NZOG will be NZ's preeminent oil company!

[Balance]

Hey don't be so pessimistic, they can buy up the remainder of Cue and the Shell assets when they come up for sale. Then NZOG will be NZ's preeminent oil company!

Zeta with its unlimited access to capital and uncanny ability to make good investments will of course underwrite the $1 billion capital raising to buy the Shell assets.

NZOG shareholders, already very grateful to Zeta's investment foresight of not participating in share buybacks and capital returns, will wholeheartedly support Zeta in its quest.

[Balance]

Oil heading towards $30.

These Zeta boys sure know how to read the markets.

Must be eyeing all those oily juicy oil assets coming up for sale with NZOG's strong cash flow?

PS. Forgot about Zeta needing funds (ie. dividends) to keep fund going. :D

[Crackity]

I can also foresee a few scenarios where it could be heading back to $60 as well Balance :)

[BlackPeter]

Oil heading towards $30.

These Zeta boys sure know how to read the markets.

Must be eyeing all those oily juicy oil assets coming up for sale with NZOG's strong cash flow?

PS. Forgot about Zeta needing funds (ie. dividends) to keep fund going. :D

Hmm - last time I checked ZETA was a corner stone shareholder with 20%. Not sure about their financial situation, but why do you think that this is relevant for the NZO thread?

[Balance]

Hmm - last time I checked ZETA was a corner stone shareholder with 20%. Not sure about their financial situation, but why do you think that this is relevant for the NZO thread?

Because the old timers here are pining their hopes on Zeta being smart investors.

Then there are those who think Zeta already controls NZOG and is getting ready to rape and pillage this little beauty of an oil stock. :D

[Balance]

Because the old timers here are pining their hopes on Zeta being smart investors.

Then there are those equally old timers who think Zeta already controls NZOG and is getting ready to rape and pillage this little beauty of an oil stock. :D

PS. And then there are many happy institutions who took the opportunity when Zeta was accumulating this hugely undervalued stock (according to old timers) to 'gift' the shares to them at over 80c.

[BlackPeter]

I sense a lot of accumulated baggage - and for sure, if NZO would have played their cards better than they would not be where they currently are.

However - it looks at current prices well undervalued (no matter, whether I look at NTA or make a PE based assessment), it feels that their resource estimates are still quite conservative ... and they have sufficient cash to get even through a prolonged low oil price environment (and as well large gas reserves as buffer against oil price swings).

Obviously - their board / management might not be the best it could be (but how many companies have all stars aligned) - and I think this is one of the reasons for the current SP.

Personally I am sure that oil will move up again (that's a when, not an if) - and when they reinstate their dividends, than the current SP will look really cheap.

Discl: hold some, but DYOR - this is obviously a somewhat speculative stock

[Crackity]

I sense a lot of accumulated baggage - and for sure, if NZO would have played their cards better than they would not be where they currently are.

However - it looks at current prices well undervalued (no matter, whether I look at NTA or make a PE based assessment), it feels that their resource estimates are still quite conservative ... and they have sufficient cash to get even through a prolonged low oil price environment (and as well large gas reserves as buffer against oil price swings).

Obviously - their board / management might not be the best it could be (but how many companies have all stars aligned) - and I think this is one of the reasons for the current SP.

Personally I am sure that oil will move up again (that's a when, not an if) - and when they reinstate their dividends, than the current SP will look really cheap.

Discl: hold some, but DYOR - this is obviously a somewhat speculative stock

Good summation BP - Investors personal views of management will influence whether to invest / divest or ignore.....I would note the cash assets held by the company are quite significant compared to market capitalisation. I'm watching this share....;)

[Balance]

I sense a lot of accumulated baggage - and for sure, if NZO would have played their cards better than they would not be where they currently are.

However - it looks at current prices well undervalued (no matter, whether I look at NTA or make a PE based assessment), it feels that their resource estimates are still quite conservative ... and they have sufficient cash to get even through a prolonged low oil price environment (and as well large gas reserves as buffer against oil price swings).

Obviously - their board / management might not be the best it could be (but how many companies have all stars aligned) - and I think this is one of the reasons for the current SP.

Personally I am sure that oil will move up again (that's a when, not an if) - and when they reinstate their dividends, than the current SP will look really cheap.

Discl: hold some, but DYOR - this is obviously a somewhat speculative stock

If you think oil price is going to recover, buy oil. No need to lug along the baggage of NZOG's poor investment and mis-mangement track record.

They could have bought most of CUE energy now for what they paid for their 48.11%. Todds saw the bright eye boys from NZO and their check book - that's for sure! :D

Likewise, the 1 for 5 share cancellation at 75c wasn't a brilliant move for remaining shareholders.

Conclusion : Cash in their hand + track record = huge investment risk.

[Crackity]

If you think oil price is going to recover, buy oil. No need to lug along the baggage of NZOG's poor investment and mis-mangement track record.

They could have bought most of CUE energy now for what they paid for their 48.11%. Todds saw the bright eye boys from NZO and their check book - that's for sure! :D

Likewise, the 1 for 5 share cancellation at 75c wasn't a brilliant move for remaining shareholders.

Conclusion : Cash in their hand + track record = huge investment risk.

yes - that is one viewpoint and not necessarily incorrect ;)

However I take anything you post on NZO with a grain of salt because of your antipathy towards the company. I think my post and BPs post today are more balanced;)

[tim23]

I wonder what NZO did to you in another life Balance?
If you think oil price is going to recover, buy oil. No need to lug along the baggage of NZOG's poor investment and mis-mangement track record.

They could have bought most of CUE energy now for what they paid for their 48.11%. Todds saw the bright eye boys from NZO and their check book - that's for sure! :D

Likewise, the 1 for 5 share cancellation at 75c wasn't a brilliant move for remaining shareholders.

Conclusion : Cash in their hand + track record = huge investment risk.

[fabs]

Interesting development.
How will our highly relative to their workload remunerated management team respond, to the beginning of the end of the Fossil fueled age.
Looks like a switch maybe to more gas exploration & concentrating on buying into gas related assets, easing out of oil???
Will they????

Btw:
Personally Not at all convinced yet global warming is caused by man. but that is another issue & will not enter into any debate on this forum.
Cheers all

[Balance]

I wonder what NZO did to you in another life Balance?

No need to wonder, tim23.

NZOG happens to have some 'ostrich heads in the sand' shareholders with a mean streak so it has been a pleasure on my part to show some of them that is not a good investment strategy.

So far, 100% correct on this company (and Pike River Coal).

Try beating that track record and ignore at your peril.

[fabs]

Yes it is just an opinion, but is it so far fetched?
Or is it mirroring what is increasingly observable?

Equities barfed nearly four percent just last week, credit is crumbling (nobody wants to lend), junk bonds are tanking (as defaults loom), currencies all around the world are crashing, hedge funds can’t give investors their money back, “liquidity” is AWOL (no buyers for janky securities), commodities are in free fall, oil is going so deep into the sub-basement of value that the industry may never recover, international trade is evaporating, the president is doing everything possible in Syria to start World War Three, and the monster called globalism is lying in its coffin with a stake pointed over its heart.

[BIRMANBOY]

OMG must be hard getting out of bed in the morning:p. Maybe consider changing your avatar to
"Not so Fabs"?
Yes it is just an opinion, but is it so far fetched?
Or is it mirroring what is increasingly observable?

Equities barfed nearly four percent just last week, credit is crumbling (nobody wants to lend), junk bonds are tanking (as defaults loom), currencies all around the world are crashing, hedge funds can’t give investors their money back, “liquidity” is AWOL (no buyers for janky securities), commodities are in free fall, oil is going so deep into the sub-basement of value that the industry may never recover, international trade is evaporating, the president is doing everything possible in Syria to start World War Three, and the monster called globalism is lying in its coffin with a stake pointed over its heart.

[fabs]

Droll sense of humor, Birmanboy
But if you lead by changing YOURS to MUSHROOM, will find it even easier getting up.

PS;Acknowledging BALANCE being the first to use this appropriate description for your kind.

[BIRMANBOY]

HAh..glad to see you haven't lost your sense of humour....even if everything else is apparently beyond hope:) Have a look at this..may brighten your day up. https://www.google.co.nz/#q=always+look+on+the+bright+side+of+life
Droll sense of humor, Birmanboy
But if you lead by changing YOURS to MUSHROOM, will find it even easier getting up.

PS;Acknowledging BALANCE being the first to use this appropriate description for your kind.

[Biscuit]

Have a look at this..may brighten your day up. https://www.google.co.nz/#q=always+look+on+the+bright+side+of+life

Doesn't that kind of back Fabs' view on life rather than yours?

[Marilyn Munroe]

All is not well in the oil business and it appears banks are encoraging oilers to sell assets.

When the Roman Empire was under pressure they thinned out garrisons guarding the frontier using the released troops to provide secuity at home until the frontier was so poorly guarded the barbarians were able to overrun it.

If I was an oiler under pressure to sell something I would first thin out my investment in a far away frontier like Aoteroa.

Are there any fields(garrisons) the barbarians at NZOG could overrun?

Boop boop de do
Marilyn

[dodgy]

All is not well in the oil business and it appears banks are encoraging oilers to sell assets.

When the Roman Empire was under pressure they thinned out garrisons guarding the frontier using the released troops to provide secuity at home until the frontier was so poorly guarded the barbarians were able to overrun it.

If I was an oiler under pressure to sell something I would first thin out my investment in a far away frontier like Aoteroa.

Are there any fields(garrisons) the barbarians at NZOG could overrun?

Boop boop de do
Marilyn

Good morning Marilyn and all.
You unfortunately have got it all wrong. NZO should be a net seller of assets and proceed to an orderly winding up. In my somewhat qualified opinion this company has been a wealth destroyer ( ask Digger) , run with too much percieved self interest for many, many years - great salaries, high overheads and in most cases little personal risk . The time has come to call a halt and salvage what may be, or a least, to stop the madness (explorers ?) and start some compensation by way of a dividend.
- dodgy (unhappy owner/shareholder/reducer)

[Balance]

Good morning Marilyn and all.
You unfortunately have got it all wrong. NZO should be a net seller of assets and proceed to an orderly winding up. In my somewhat qualified opinion this company has been a wealth destroyer ( ask Digger) , run with too much percieved self interest for many, many years - great salaries, high overheads and in most cases little personal risk . The time has come to call a halt and salvage what may be, or a least, to stop the madness (explorers ?) and start some compensation by way of a dividend.
- dodgy (unhappy owner/shareholder/reducer)

Not Digger - he fought tooth and tail to defend the directors and management of NZO.

[dodgy]

Not Digger - he fought tooth and tail to defend the directors and management of NZO.
Good afternoon Balance and all
Sadly I think you are right. What is thought about my winding down/up - dividends at least?
-dodgy (owner/shareholder/reducer)

[Balance]

Good afternoon Balance and all
Sadly I think you are right. What is thought about my winding down/up - dividends at least?
-dodgy (owner/shareholder/reducer)

Zeta made it very clear when they did the capital return (mostly for their own purpose than for all shareholders) that dividends would be stopped.

That was the time to sell down and get out.

What about now?

If one believes in the oil price recovering, than one can buy oil exposure directly and take away management risk.

[arjay]

Good afternoon Balance and all
Sadly I think you are right. What is thought about my winding down/up - dividends at least?
-dodgy (owner/shareholder/reducer)

Given the share backing vs current share price, if I were NZO management I'd be looking at privatising the company. They could probably buy back everyones shares at a price that would make everyone happy (including management).

[Balance]

Given the share backing vs current share price, if I were NZO management I'd be looking at privatising the company. They could probably buy back everyones shares at a price that would make everyone happy (including management).

And what is the share backing?

[Sideshow Bob]

And what is the share backing?

according to the NZX website, NTA is 85.8 cents.

That's why it's trading in the low 40's ;)

[Balance]

according to the NZX website, NTA is 85.8 cents.

That's why it's trading in the low 40's ;)

Based upon oil price at US$60 barrel?

[dodgy]

Given the share backing vs current share price, if I were NZO management I'd be looking at privatising the company. They could probably buy back everyones shares at a price that would make everyone happy (including management).

Good morning Arjay and all,
I agree. I alluded to this a couple of years ago on this thread. Ak appears to come from a very successful capital management/manipulation background "Watchman Capital" as I understand it. He has recently stepped down from the board. But, and this is a big BUT, all this was probably premised on higher oil prices. I say flog it all off and lets have at least some capital returned - 85c nta may be overly optimistic but at least the high overhead bleed will stopand at this point in history "a bird in the hand!!". From 2 decent oil/gas discoveries in the eighties, nothing decent since, this company needs winding up and soon. I wonder about Diggers view now.
Have a happy investing roller coaster.
-dodgy (owner/shareholder/capital bleeder)

[fabs]

Yes the sun his slowly sinking below the horizon for S/Hs and has been of course for a long long time.
To hope that management has sympathies for them and do something on compassionate grounds, is utter pie in the sky stuff.
Let alone any hope them contemplate killing the goose that lays the golden egg for a long while yet.
Certainly have ample funds to idle along, hugging the Through, with a cynical smirk on their faces every one of them.
BTW:
Where are all the Peak Oil Gurus hiding out these days???

[arjay]

Where are all the Peak Oil Gurus hiding out these days???

Getting drunk with all the Fracking Gurus mostlike.

[fabs]

The oil glut is producing international economic havoc and now Iran is about to flood the market with half a million barrels a day. In one Michigan town there is a gas war going on and gas is 49 cents a gallon. Flint Michigan has a serious water emergency.
Switching to drilling for water, better option for NZO
Here is still HOPE?!?!

[dodgy]

The oil glut is producing international economic havoc and now Iran is about to flood the market with half a million barrels a day. In one Michigan town there is a gas war going on and gas is 49 cents a gallon. Flint Michigan has a serious water emergency.
Switching to drilling for water, better option for NZO
Here is still HOPE?!?!

Hi Fabs and all
No one appears to interested in my winding up solution - to at least salvage something while there is still something (Kupe) worth selling. And first overhead headed for the door should be the "external relations manager" a relatively recent (if you have had an interest since the eighties) addition being part of AK's upspecing and increasing of overheads to produce a best in class research facility. Comments?
Regards and happy investing.
-dodgy (owner/shareholder/reducing investor - better prospects NZR)

[Balance]

Hi Fabs and all
No one appears to interested in my winding up solution - to at least salvage something while there is still something (Kupe) worth selling. And first overhead headed for the door should be the "external relations manager" a relatively recent (if you have had an interest since the eighties) addition being part of AK's upspecing and increasing of overheads to produce a best in class research facility. Comments?
Regards and happy investing.
-dodgy (owner/shareholder/reducing investor - better prospects NZR)

Your suggestion/recommendation has extremely compelling merit and logic.

Insurmountable problem is that NZO has always been controlled by a few - first Radford and now, Zeta. Hard to dislodge them as fragmented shareholding and few institutions.

[skid]

The oil glut is producing international economic havoc and now Iran is about to flood the market with half a million barrels a day. In one Michigan town there is a gas war going on and gas is 49 cents a gallon. Flint Michigan has a serious water emergency.
Switching to drilling for water, better option for NZO
Here is still HOPE?!?!

Interesting since they are sitting near one of the great lakes (water) but the issue of water will not be a joke in the future for many places(or in the present for California)

[Sideshow Bob]

I would concur with others regarding performance, going back over a very long period. No sugar coating here.

While the oil industry is being decimated in the short term, longer-term strategy is questionable. Maybe that is being a little unkind or I haven't been paying enough attention, but I guess if they'd had a decent find in the last 20 or so years, then it might have changed this. I am over the glossy reports.

In the meantime, they have $103m in cash, that's over 30cps, and I just don't want to see this frittered away. Of this $41m is in USD, so done alright out of that. Quarterly report should be out in the next week or two, so some interest to see what that brings.

Given cash in hand, the market values the rest of the company at under $30 million. A sign of market irrationality? Or more likely the direction of the company??? Wind-up should be looked at seriously if they look at maximising shareholder wealth - cut all the costs, return cash to shareholders and sell assets once market recovers.

From a personal perspective, clearly my worst ever investment. But a large learning curve. ;)

[Balance]

NZOG (and its ilk) should trade at big discounts to any valuation given management diabolical track record and the huge fees, salaries, bonuses, travel, entertainment and costs they extract from the company for said SAD performances.

[dsurf]

I think you are dreaming if you think nzo has the common sense to buy cheap reserves via acquisition. They have had the opportunity since issuing shares at $1.50 roughly eight years ago when they they had circa 350mill in the bank. Since then they had another huge windfall from issuing PRC shares.

What has happened since.


loss making acquisitions of PPP shares so that Radford could raise cash. Also did the exact opposite of diversification so that when the tui double down failed $ flooded out

Purchase of some dodgy middle east dirt that had to be written off when NZO noticed that war happens in the middle east. was a great holiday for the execs though who needed to sign a few a papers between greek island cruises.

purchase of kiasarian in very dodgy indonesia where there is no gaurantee of earning anything. produces hundreds of barrels. game changer!!

badly managed a mine so badly that it blew up as they did not realise that there was a gas risk involved in mining - huge investment $ wasted

many unprofitable drills

couple of dividends but they had to be halted to prolong the life of the gravy train for the pigs in the trough

.............

a company that is undervalued can become even more undervalued and sadly this is the worst run NZ listed company ever as they have wasted roughly half a billion $ (others have lost more but that was due to fraud, not management policies) and killed many innocent people through gross (should have been criminal) negligence.

The only way to sensibly invest in NOG is to open a CFD short.

[Balance]

In the meantime, they have $103m in cash, that's over 30cps, and I just don't want to see this frittered away. Of this $41m is in USD, so done alright out of that. Quarterly report should be out in the next week or two, so some interest to see what that brings.



Market is placing a huge discount on the management and governance of this company.

IMO, the writing was on the wall when its CEO/MD Andrew Knight did a Pontius Pilate during the debate on taking care of the dead miners' families. He abdicated the company's ethical, moral and community responsibilities and leadership by getting shareholders to vote down the compensation proposal. A company with no moral bearing at its helm has no future.

[777]

Balance's selected stocks in competition

NZO PEB SNK RAK MOA

Yet he states above that the company has no future. Go figure.

[Balance]

Balance's selected stocks in competition

NZO PEB SNK RAK MOA

Yet he states above that the company has no future. Go figure.

You forgot RIS!

[blackcap]

Balance's selected stocks in competition

NZO PEB SNK RAK MOA

Yet he states above that the company has no future. Go figure.

I think Balance is being "satirical" here and going for the wooden spoon :)

[skid]

balance's selected stocks in competition

nzo peb snk rak moa

yet he states above that the company has no future. Go figure.

nzo...peb ???

[777]

You forgot RIS!

Just cut and pasted from you entries. Do you not know what you entered?

By the way it is Thursday.

[Sayce]

Yes I am pleased the realization has finally landed that Peak Oil is a real crock of an idea. I posted on this a number of years ago. Its major deficiency is that it overlooked the role of the market in determining the price of oil and also assumed that the major determinant lay on the supply side.

[skid]

Yes I am pleased the realization has finally landed that Peak Oil is a real crock of an idea. I posted on this a number of years ago. Its major deficiency is that it overlooked the role of the market in determining the price of oil and also assumed that the major determinant lay on the supply side.

Well,fracking has certainly boosted supply,but otherwise Im not sure the supply has increased that much.
Alot is being sold due to economic circumstances--even the Saudies...but for sure ..their are variables to any theory.

As unbelievable as it would have seemed a year ago that oil would be under $30--It could be just as unbelievable in next year how much it has bounced. (Its still pretty hard stuff to find)

(not a recommendation to buy this share though)

[fabs]

It is not a case of O/P going up or down that affects NZO.
Something far more obvious ails this Company.

[skid]

If it was the price of oil ,I would venture to say ,this is as bad as it gets(of course thats my guess)

One interesting side bar (useless but interesting) I noticed it (nzo) was selling at the same price as (PEB) --another battered share--they are not on par anymore (PEB 6c higher) not because of any great announcements

Ive been on the both sides in terms of support for this share --It certainly does seem like they have some basic problems with management

It would be hard to come up with a good reason to buy at this stage---(of course its a much harder decision whether to sell) All that talk about the brave holding is crap--Its just the opposite most of the time

[Balance]

If one believes in the oil price recovering, than one can buy oil exposure directly and take away management risk.

Oil bounces nearly 20% in 2 days.

Guess how much will NZO bounce on Monday?

[skid]

S&P bounced around 3% just to put it into perspective--NZO would need 1-2c to achieve that

[arjay]

It would be hard to come up with a good reason to buy at this stage---(of course its a much harder decision whether to sell) All that talk about the brave holding is crap--Its just the opposite most of the time

Fair comment. Around 15 years ago NZO was trading around the 50c mark, which is where it had more-or-less been since the Co was formed in 1983. At that time (15 years ago) NZO had no producing assetts except for the trickle of income they recieved from the Ngatoro well (which they later sold to Greymouth). Granted they had an undeveloped Kupe field, but no-one wanted gas then. Nowadays, the SP is much lower, yet they are sitting on a pile of cash and several assets that are definitely worth something. For a prospective shareholder, what is the incentive to buy this stock just now? There are no dividends: NZO still makes a considerable income but management have taken away the mechanisms to share this income with shareholders. There has been talk of lucrative acquisitions since 2008 but no action. There is no game-changing exploration planned, and even if there was NZO geologists have consistently shown over the last 10yrs (since Pateke discovery) that they are incapable of finding anything. If the price of oil doubles next week it seems to me NZO SP would probably do nothing as potential buyers would be scratching their heads as to how they could possibly benefit.

[Balance]

Fair comment. Around 15 years ago NZO was trading around the 50c mark, which is where it had more-or-less been since the Co was formed in 1983. At that time (15 years ago) NZO had no producing assetts except for the trickle of income they recieved from the Ngatoro well (which they later sold to Greymouth). Granted they had an undeveloped Kupe field, but no-one wanted gas then. Nowadays, the SP is much lower, yet they are sitting on a pile of cash and several assets that are definitely worth something. For a prospective shareholder, what is the incentive to buy this stock just now? There are no dividends: NZO still makes a considerable income but management have taken away the mechanisms to share this income with shareholders. There has been talk of lucrative acquisitions since 2008 but no action. There is no game-changing exploration planned, and even if there was NZO geologists have consistently shown over the last 10yrs (since Pateke discovery) that they are incapable of finding anything. If the price of oil doubles next week it seems to me NZO SP woudl probably do nothing as potential buyers woudl be scratching their heads as to how they could possibly benefit.

You have to look at market cap as NZO has issued several hundred million dollars of new shares so sp at 50c decades ago is not a pertinent measure of where the sp should be now.

The shares were issued and NZO proceeded to squander the new capital in all kind of misadventures and bad investments - Pike, Indonesia, Tunisia etc etc etc.

[Carpenterjoe]

A little good news I suppose, hopefully testing goes well, 100% cue makes NZO 48%.

[fabs]

A little good news I suppose, hopefully testing goes well, 100% cue makes NZO 48%.

More good news on the exploration front on their website under, GREAT EXPLORERS IN THE DEEP.

Great White Sharks named Caitlan and Thomas are tagged for success.

[Marilyn Munroe]

More good news on the exploration front on their website under, GREAT EXPLORERS IN THE DEEP.

Great White Sharks named Caitlan and Thomas are tagged for success.

If the directors don't pull up their socks can we dress them up in seal costumes and make them walk the plank off the Umuroa?

After all the shareholders cash lavished on them I am sure Caitlan and Thomas would be happy to assist the shareholders.

Think of the great line from the Quint character in Jaws "This shark, swallow you whole. Little shakin', little tenderizin', an' down you go."

Boop boop de do
Marilyn

[macduffy]

More ONZ-related news.

http://www.stuff.co.nz/business/76494808/oil-storage-and-production-vessel-the-raroa-to-get-60-million-upgrade

[tim23]

Anyone know result date?

[King1212]

23rd feb, result is due

[Sideshow Bob]

23rd feb, result is due

Nothing so far.....

[King1212]

Nothing so far.....

on NZherald
7902

[tim23]

Company advised me result due 29 February

[trader_jackson]

lol one of the last days, if not that last day they are legally allowed to report (60 days isn't it?)

Wouldn't it be nice if they gave us all a much deserved dividend present... Forsyth believes they have the imputation (100%) to do it..

[digger]

lol one of the last days, if not that last day they are legally allowed to report (60 days isn't it?)

Wouldn't it be nice if they gave us all a much deserved dividend present... Forsyth believes they have the imputation (100%) to do it..

I do not want one. Would not a well researched acquisition be much better. This is the age to buy into a company and know exactaly what you are getting . Called drilling on wall street. If I lived another 100 years I am sure you will never see thees opportunity again. You can always have a dividend,but to spend the money on a dividend in this time of acquisition opportunity would be wrong sighted.

[Balance]

I do not want one. Would not a well researched acquisition be much better. This is the age to buy into a company and know exactaly what you are getting . Called drilling on wall street. If I lived another 100 years I am sure you will never see thees opportunity again. You can always have a dividend,but to spend the money on a dividend in this time of acquisition opportunity would be wrong sighted.

You are assuming these guys know how to make good acquisitions.

[trader_jackson]

You are assuming these guys know how to make good acquisitions.

Which as far as I'm concerned, they can't... all the talk around acquisitions when the fuel price was low in late 2008/early 2009 and they sat on their hands and did nothing. So I would rather have some dividend (ie payback) than see them sit on a pile of cash and ultimately talk talk talk, but do nothing (or even worse, continue to buy back shares and do "capital returns")

[Sideshow Bob]

You are assuming these guys know how to make good acquisitions.
And that would be a long bow to draw....

[Carpenterjoe]

Which as far as I'm concerned, they can't... all the talk around acquisitions when the fuel price was low in late 2008/early 2009 and they sat on their hands and did nothing. So I would rather have some dividend (ie payback) than see them sit on a pile of cash and ultimately talk talk talk, but do nothing (or even worse, continue to buy back shares and do "capital returns")


Interesting TJ,

soooo the recent result from cue showing a 40% lift in production revenue yoy hasn't restored any of your confidence?

I'm of the opinion the recent cue purchase has been pretty well done, yes a premium has been paid and timing could have been six-twelve months better.

Its a hard one to judge, no one knows how long downward pressure on oil prices will last, spend too much cash now and suffer the consequences later.

[fabs]

C/J
Personally would see it a 50/50 call.

However, and yes i know am going to the fringe here, but lets just consider the not entire too far fetched scenario of a Gov. assisted euphemistically called hypothetical HAIR-CUT. Cyprus & Greece spring to mind.
BTW: more in the pipe-line in the present W/wide accelerating financial & economic slide.

Would it not be better to copy the mercenary example of NZOs manag.==[ continuing feathering their nests and la-de-daing along ]
and have our eggs also in more than one Basket.

So this kid here, leaning more in favor of staff reductions and at least some dividends.

[Balance]

Zeta now controls this company.

Understand their goals and their motivations and you will have your answers regarding what NZO will do with its earnings (if any) and cash (there's plenty).

I feel sorry for long time shareholders who could never really understood or understood the motivations of the controlling shareholders over the decades.

If you believe oil is going to go back up, there are plenty of well run oil companies out there which can be invested in. Or you can simply invest in oil without the investment risk of mismanagement of your hard earned capital.

[Balance]

And in case you think oil is going to go back to US$100 per barrel :

http://www.bloomberg.com/news/videos/2016-02-24/the-peak-oil-myth-and-the-rise-of-the-electric-car

http://www.bloomberg.com/features/2016-ev-oil-crisis/

Is that why Saudi Arabia is pumping out as much as it can? Oil in the ground used to have ever rising value as demand rises and supply dwindles. The lesson of the oil price crash of 2015/16 is that it is not necessarily the case.

Meanwhile, the only thing that keeps countries like Saudi Arabia afloat is oil is oil revenue.

Venezuela provides an excellent example of how an oil rich country can go broke.

NZOG? A small little minnow with a track record of gross mismanagement and a company with no ethics, morality or guiding principles.

[Andrew]

I have a few of these. Perhaps hoping or reasonably confident that there will be a rise in the value of oil in the future. But not quite sure enough to commit to buying a lot more. The company is probably in a similar position as to the reserves of cash they are holding. While they are in the business, the value of oil is dictated by other bigger players and external factors. So they just need to sit on the fence as well. Who would have thought. In the 70's we all thought oil would run out by 1995. Then peak oil was the catchphrase. Now we have so much, cant get rid of it. Maybe shortsighted but I will lose confidence in oil when I get an electric vehicle. Not happening soon. Could be wrong but genesis may change huntly from coal to fuel burning and genesis and nzo have some very common ownerships. Heres hoping anyway. Have way too many genesis as well. Seems all my oil is in the same barrell.

[tim23]

lol one of the last days, if not that last day they are legally allowed to report (60 days isn't it?)

Wouldn't it be nice if they gave us all a much deserved dividend present... Forsyth believes they have the imputation (100%) to do it..

I'm picking a divvy

[Andrew]

I'm picking a divvy

Soething was said by management at the last meeting, something to the effect the company will pay out the cash to shareholders, but the shareholders must be willing to stump up with cash when the time comes and the company needs it. Maybe a dividend of some sort. Long time coming though.

[Sideshow Bob]

$96.5m in cash at the end of the last quarter, so a little over 28 cps, so have it there. If not going to buy something worthwhile, then give it back to shareholders....

[Balance]

$96.5m in cash at the end of the last quarter, so a little over 28 cps, so have it there. If not going to buy something worthwhile, then give it back to shareholders....

I can see share buyback. Dividend will be counter to Zeta's strategy of creeping up its shareholding.

[tim23]

I can see share buyback. Dividend will be counter to Zeta's strategy of creeping up its shareholding.

Balance - what do you think zetas end game is?

[Andrew]

Buy back is still in progress. Last year a five year buy back plan was approved by shareholders. Zeta was not to take part. The quantity of the buyback was analysed not to increase the major shareholding proportion by s large percentage. Havent seen many announcements on how its proceeding.

[trader_jackson]

https://www.nzx.com/companies/NZO/announcements/278471

Thoughts?

[xafalcon]

The board taking a remuneration haircut in lean times. That is very fair and honourable. A few other companies should look at this and learn, but of course they won't.

[trader_jackson]

The board taking a remuneration haircut in lean times. That is very fair and honourable. A few other companies should look at this and learn, but of course they won't.

I am surprised NZOG of all companies would actually do this... a very nice surprise, but no dividend (which wasn't to much of a surprise)... loss due to write downs also not a surprise, good to see cash flows still strong and of course no debt

[Balance]

The board taking a remuneration haircut in lean times. That is very fair and honourable. A few other companies should look at this and learn, but of course they won't.

Read carefully : "The outgoing chairman will not be replaced on the Board and Directors' fees will be reduced, providing a cost reduction of around 30 per cent as a demonstration of the Board's determination to restructure corporate costs".

Not a haircut - simply not replacing the Chairman on the Board. Mr Griffiths was paid $160,000 (yes, $160,000) in 2015.

Suits NZOG to have one less independent highly overpaid useless director.

[Andrew]

Asset writedowns due to low oil prices, imagine when there is a recovery in oil prices, where this share will skyrocket to. Worth holding some of these.

[Balance]

Asset writedowns due to low oil prices, imagine when there is a recovery in oil prices, where this share will skyrocket to. Worth holding some of these.

Then invest in oil futures. Imagine where your options will rocket to?

[Andrew]

These are oil futures.

[digger]

A good report in troubled times. Wonder where this finanical outcomes put NZOG relative to other oil companies world wide. Well up somewhere near the top from what I have been reading.
Great that there will be no dividend and I like the mention of acquisition.
I continue to be against the buyback as it only helps Zeta increase % holding and sellers that want to get out.
Yes keep cost down and no more drilling.
Balance is right we do not need to replace PG and perhaps boot out a few more directors and cut back on management.

[Balance]

A good report in troubled times. Wonder where this finanical outcomes put NZOG relative to other oil companies world wide. Well up somewhere near the top from what I have been reading.
Great that there will be no dividend and I like the mention of acquisition.
I continue to be against the buyback as it only helps Zeta increase % holding and sellers that want to get out.
Yes keep cost down and no more drilling.
Balance is right we do not need to replace PG and perhaps boot out a few more directors and cut back on management.

Should be investing in another coal mine. They are very cheap apparently - like $1 for a mine in Queensland.

[fish]

A good report in troubled times. Wonder where this finanical outcomes put NZOG relative to other oil companies world wide. Well up somewhere near the top from what I have been reading.
Great that there will be no dividend and I like the mention of acquisition.
I continue to be against the buyback as it only helps Zeta increase % holding and sellers that want to get out.
Yes keep cost down and no more drilling.
Balance is right we do not need to replace PG and perhaps boot out a few more directors and cut back on management.

Some good points digger.
$31.7 million free cashflow which is outstanding for 6 months at a time of crisis for most operators.
Cutting costs and accounting policies changing .
No interim dividend but still a possibility of a final-quite likely I suspect as they like giving a final to improve sentiment before the agm.
Kupe reserves upgraded-and will cost no more to extract.Unmanned and minimal operating costs so good profits

[Balance]

Some good points digger.
$31.7 million free cashflow which is outstanding for 6 months at a time of crisis for most operators.
Cutting costs and accounting policies changing .
No interim dividend but still a possibility of a final-quite likely I suspect as they like giving a final to improve sentiment before the agm.
Kupe reserves upgraded-and will cost no more to extract.Unmanned and minimal operating costs so good profits

Good points but ...

.... Zeta could not give a stuff about sentiment. The more negative, the better.

[Andrew]

Not worried about Zeta increasing their percentage ownership. If you were concerned about that you could buy on the open market and increase your proportion as well. I've had shares in NZO for quite a few years now (only since the end of the end of the Pike River debacle). Except for unfortunate occurrences out of the control of the company, I think it is well managed, has a good approach to exploration, and spending money. The purchase of the Cue interest was great. Unfortunately the oil price went against them, no one would have thought oil would go down so low. This is obvious when you see what Genesis has been selling their oil for under forward contracts. Those players are in the business of guessing the future price of oil, and they have got it wrong.

Soon we will get an announcement by CUE of the potential of the Indonesian producing well.

Share price is increasing steadily at the moment, why I wonder.

[Balance]

Share price is increasing steadily at the moment, why I wonder.

Eh - have you checked the prices of other oil and gas companies?

Kid in high school gave the answer in 5 seconds.

Or do you actually think NZO is the be all and end of investments in the oil and gas sector?

:D

[Andrew]

Eh - have you checked the prices of other oil and gas companies?

Kid in high school gave the answer in 5 seconds.

Or do you actually think NZO is the be all and end of investments in the oil and gas sector?

:D

May have to enlighten me about the highschool kids reasons. Oil price is only $34-66 per barrel. While there is talk of the Oil producing countries cutting production the Sunni/Shia hatefest will stop that gaining momentum. All I read about is American oil companies going bankrupt. NZO may not be the only oil company out there to invest in, but I like the fact that its a smallish company, and its exposure to many of the exploration/producing sites is as a minority interest in the main. I also have shares in Genesis as well.

At the moment I do think NZO is the be all and end all of investments in the oil and gas sector. Better cash flows based on asset backing than many Saudi companies at the moment.

[Balance]

May have to enlighten me about the highschool kids reasons. Oil price is only $34-66 per barrel. While there is talk of the Oil producing countries cutting production the Sunni/Shia hatefest will stop that gaining momentum. All I read about is American oil companies going bankrupt. NZO may not be the only oil company out there to invest in, but I like the fact that its a smallish company, and its exposure to many of the exploration/producing sites is as a minority interest in the main. I also have shares in Genesis as well.

At the moment I do think NZO is the be all and end all of investments in the oil and gas sector. Better cash flows based on asset backing than many Saudi companies at the moment.

Haha - you obviously have not checked the share prices of other oil and gas companies.

Wellington is the capital of the Western world and NZ has a navy which is second to none.

[Andrew]

Haha - you obviously have not checked the share prices of other oil and gas companies.

Wellington is the capital of the Western world and NZ has a navy which is second to none.

Well as I and my close relatives live in New Zealand, my grandkids are being educated in New Zealand, I only invest in New Zealand. That is not to say that companies I invest in don't invest overseas, but I made a commitment to New Zealand and wont invest myself outside of New Zealand. Maybe short sighted, maybe because there are too many dynamics in overseas companies, who knows. But I always remember listening to a story a while ago called Acres of Diamonds, which confirmed you need to be positive about your own backyard.

[notie]

NZOG can't even carry out a proper takeover and their attempt to take over Cue is a complete mess. They made an offer in Dec 2015 and only made it to 48% and 14 months on no resolution.

Other than that they are completely rudderless and keep talking about this war chest and buying more production assets, which is the same thing they have been talking about since 2008. All they managed to invest in was Pike.....

Their investment in Indonesia is a disaster and unlikely ever to make them any money.

What NZOG really should do is cut the board numbers in half, and fire half the senior management and move into a much cheaper office. Really the whole thing is some kind of bad joke.



Well as I and my close relatives live in New Zealand, my grandkids are being educated in New Zealand, I only invest in New Zealand. That is not to say that companies I invest in don't invest overseas, but I made a commitment to New Zealand and wont invest myself outside of New Zealand. Maybe short sighted, maybe because there are too many dynamics in overseas companies, who knows. But I always remember listening to a story a while ago called Acres of Diamonds, which confirmed you need to be positive about your own backyard.

[tim23]

Maybe 14 months after December 2015 (this time next year) it might look a bit better Notie?

[Andrew]

NZOG can't even carry out a proper takeover and their attempt to take over Cue is a complete mess. They made an offer in Dec 2015 and only made it to 48% and 14 months on no resolution.

Would have been easy to get 100% acceptances, all they had to do was to throw the money at it. But no, they did the responsible thing and got what they could at the best price possible. Actually I would have to pat them on the back, only getting 48% means that they did not overprice their offer.

[Balance]

Would have been easy to get 100% acceptances, all they had to do was to throw the money at it. But no, they did the responsible thing and got what they could at the best price possible. Actually I would have to pat them on the back, only getting 48% means that they did not overprice their offer.

Actually they should never have bought off Todds at 10c per share.

Sp now is 6.1c - 39% loss.

[tim23]

Not sure anyone saw oil price crash apart from you Balance?

[Balance]

Not sure anyone saw oil price crash apart from you Balance?

Nope - just saw incompetent, unethical and immoral management.

[trader_jackson]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11601078

FYI

[kizame]

Isn't it interesting, a year or so back we were lucky if we had 50 yrs supply left,best not to believe the hype.

[trader_jackson]

https://www.nzx.com/companies/NZO/announcements/279101

Why couldn't they just pay a dividend???

[Sideshow Bob]

https://www.nzx.com/companies/NZO/announcements/279101

Why couldn't they just pay a dividend???

Yeah cause the last share buy back was real good for the share price.........

[Balance]

Yeah cause the last share buy back was real good for the share price.........

Suits Zeta just fine.

[Andrew]

If you think Zeta is just getting rich on all this, to do with NZ Oil and Gas, buy some Zeta shares on the ASX and get rich as well.

[Carpenterjoe]

Some investors hate dividends, they feed the tax man. Some investors prefer value and the ability to manage tax against loses. Different strokes for different folks.

[Balance]

If you think Zeta is just getting rich on all this, to do with NZ Oil and Gas, buy some Zeta shares on the ASX and get rich as well.

Zeta bought into a puppy and they will try everything imo to screw other shareholders to maximise their position.

Story of NZOG.

[tim23]

Firmer on Friday on decent volume - may be change of sentiment that may be hard to stomach Balance...

[Sideshow Bob]

Would be interesting to know there idea of the 'underlying value of the companies assets' and what price they would buy up to. Share price now starting to challenge 50c - although only 10k through this morning.

[tim23]

No doubt will get a few bites from Balance & Notie when/if the share price retreats they will be on to that real quick!

[tim23]

Gee holding on to 50c - the silence is Golden!
No doubt will get a few bites from Balance & Notie when/if the share price retreats they will be on to that real quick!

[trader_jackson]

Gee holding on to 50c - the silence is Golden!

Bit like PEB which is holding well above 50c as well!
Almost as much silence as this thread!
(funny that...)

[skid]

Bit like PEB which is holding well above 50c as well!
Almost as much silence as this thread!
(funny that...)

there are actually alot of similarities between NZO-and PEB (as odd as that may seem) They have both been darlings of the share market at one point--both probably the most popular thread at a point.
They are both highly speculative.
NZO has had what many would consider management problems for a long time--PEB is still unproven in that area(juries still out)but it would be a stretch to say they have been great)
They have both gone to lofty heights and crashed down.
Cant write either off but large doses of faith are required. Low debt is a saving grace for both.

Heres a useless bit of info--I once made $18000 on one sale of NZO shares(but in the end came out about even) Learned alot (I was out fortunately by the time Pike disaster came along.

[pietrade]

there are actually alot of similarities between NZO-and PEB (as odd as that may seem) They have both been darlings of the share market at one point..........

The share buy back might give the market price a bit of a boost - especially if they buy the 64million (19%) they're permitted to do.

[neopoleII]

""especially if they buy the 64million (19%) they're permitted to do. ""
which puts zeta closer and closer to control of the company.......
funded by the "rest" of the loyal shareholders.
a divi or cashback would of been fairer for ALL of the shareholders.
a sad state of affairs here..... all above board though........ DOH i said board.... which board is that.... our board or big shareholder board.... or takeover board?

[fish]

The share buy back might give the market price a bit of a boost - especially if they buy the 64million (19%) they're permitted to do.

If you were intending to buy so many surely buying now when the market is so depressed and sentiment is still negative-but first signs of light at the end of a tunnel appearing-it would be prudent to start the buyback.
American production is starting to fall and this is what caused the crash.
There are a lot of holders like Digger who will never sell at these prices.
Zeta might already have more control of decision making than their holding indicates-its not in their interests for the sp to rise and i wonder if they are delaying the start of the buyback.

[Sideshow Bob]

https://nzx.com/companies/NZO/announcements/279756

The joint venture in PEP 52181 (Kaheru), offshore South Taranaki, has submitted an application to surrender the permit.
Operator New Zealand Oil & Gas announced in February that economic conditions could not support drilling the prospect before the commitment date of May 2016.
After exploring options to defer or amend work obligations, the joint venture has submitted to the regulator an application to surrender the permit.
The permit is held by New Zealand Oil & Gas (35%, Operator), TAG Oil (40%) and Beach Energy (25%).

[Carpenterjoe]

Anyone else pick up on Cue's CEO jumping ships?

[Queenstfarmer]

Fast approaching 6 weeks since any announcement on Naga Selatan-2 well? Last news was they'd reached total depth.

[digger]

Anyone else pick up on Cue's CEO jumping ships?

Probably more like a gentile push from the major shareholder,nzo

[notie]

https://nzx.com/companies/NZO/announcements/279756

The joint venture in PEP 52181 (Kaheru), offshore South Taranaki, has submitted an application to surrender the permit.
Operator New Zealand Oil & Gas announced in February that economic conditions could not support drilling the prospect before the commitment date of May 2016.
After exploring options to defer or amend work obligations, the joint venture has submitted to the regulator an application to surrender the permit.
The permit is held by New Zealand Oil & Gas (35%, Operator), TAG Oil (40%) and Beach Energy (25%).

This will be the first of more land they surrender. It had been clear for a long time that they weren't going to drill this prospect, especially as their partner tag oil didn't have the money to fund their share and the only rig capable of drilling had left the country.

Is NZO ever going to close their T/O of Cue?

[notie]

Probably more like a gentile push from the major shareholder,nzo
He got a much better offer from AWE. Cue was going nowhere

[tim23]

Looks more like surrendered ocean to me - seems sensible in this environment don't you think...?
This will be the first of more land they surrender. It had been clear for a long time that they weren't going to drill this prospect, especially as their partner tag oil didn't have the money to fund their share and the only rig capable of drilling had left the country.

Is NZO ever going to close their T/O of Cue?

[notie]

Looks more like surrendered ocean to me - seems sensible in this environment don't you think...?

yes, they should have got rid of it ages ago when they failed to farm it out.

[Sideshow Bob]

NZOG looks at onshore conceptsBy Simon Hartley
Created 30/03/16
0 0 ShareThis
Minimising cash burn remains the focus for New Zealand Oil & Gas, which is reliant on its New Zealand gas assets to see it through plunging global oil prices.
While having to post asset value writedowns and a $45million loss for the six months to December, NZOG remains interested in southern oil and gas prospects in deepwater targets off the coast of Oamaru.
Though many years of exploration lie ahead, NZOG is looking at whether there is a South Island market for an onshore plant for processing methane-rich gas, which could be used for electricity generation or replacement of coal in dairy plant operations.
An NZOG spokesman said the company was ‘‘analysing concepts'' to develop markets in the South Island.
‘‘We want to look and see if there is potential for industrial uses ...'' he said.
Offshore from Oamaru, NZOG has permits for the Barque, Clipper 1 and Galleon 1 prospects, with Barque having the most potential, the spokesman said.
NZOG had not yet found a joint venture partner for a southern drilling proposal off Oamaru, nor did it have a potential drilling programme in place, he said.
Despite asset value writedowns, a change in accounting for exploration costs and losing $14.5million from low oil prices, NZOG's net group revenue was up by $11.3million to $65.4million, including a $28.5million contribution from Cue Energy and a $3.4million gain on foreign exchange.
NZOG shares are 13% down on a year ago, but were unchanged after the announcement at 49c yesterday.
Chairman Rodger Finlay said despite the writedowns of asset valuations, the company was performing well and was cash positive with a strong balance sheet.
‘‘The board is intensifying its focus on minimising cash burn,'' he said.
Overall, last year's after tax half-year loss of $7.7million increased to a $45.2million loss.
Chief executive Andrew Knight said despite the loss, NZOG achieved a cash surplus from operations of $31.7million, up by $9million from a year ago.
‘‘The oil price had a negative impact of $14.5million and lower sales reduced revenue by a further $6.1million as shipments were deferred to exploit the potential for some recovery in prices,'' he said in a statement yesterday.
Mr Knight said NZOG had enough cash from long-term gas contracts to sustain the business through the oil price downturn.
‘‘Our Kupe asset remains the centre-piece of the company's performance. At contracted gas prices Kupe has positive cashflow even if oil and lpg prices were nil.‘‘Kupe gas revenues alone more than cover operating costs of the asset,'' Mr Knight said.
NZOG had yesterday begun reporting its ‘‘contingent resources''; being estimates of potentially recoverable volumes of discovered hydrocarbons, where no final decision had been made on the commercial viability of production.
Contingent resources for the half-year were 47.45million barrels of oil equivalent, giving an insight into the volumes being analysed at Kisaran, Indonesia, and Clipper, near the Barque prospect off Oamaru, he said.
‘‘Clipper was discovered in the 1980s and assessed as noncommercial at the time because no market was believed to exist in the South Island for the gas found there,'' Mr Knight said.
Because NZOG had taken a new look at Clipper, it was now analysing whether a potential industrial market for gas may be available in the South Island, he said.
Mr Knight said in response to the present oil price, NZOG posted ‘‘a writedown in our oil-producing assets, such as Tui, where NZOG had a 27.55 interest''.
‘‘The value was reduced by a further $8.7million,'' he said.
NZOG was now forecasting the Tui field's economic life would end in the first quarter of 2018, when Tui would be abandoned.

http://www.odt.co.nz/print/377856

[fabs]

Mr Knight said NZOG had enough cash from long-term gas contracts to sustain the business through the oil price downturn.

Well that's good news for the crew, cushy job & income assured for at least the next 10 years.

[Sideshow Bob]

https://nzx.com/companies/NZO/announcements/280240

http://www.odt.co.nz/news/business/378709/nzog-delist-australia-savings-drive

Seems sensible.

[jonu]

Mr Knight said NZOG had enough cash from long-term gas contracts to sustain the business through the oil price downturn.

Well that's good news for the crew, cushy job & income assured for at least the next 10 years.

How would he know? Maybe this is the new normal for poo?

[skid]

How would he know? Maybe this is the new normal for poo?

There is no way for him to know the timeline--but I would certainly not be betting the farm on this being the ''new normal''--Its more a matter of ..for how long it stays low. (this is not an endorsement of NZO)

[trader_jackson]

https://www.nzx.com/companies/NZO/announcements/280526

So what's this all about?

[Sideshow Bob]

https://www.nzx.com/companies/NZO/announcements/280526

So what's this all about?

Hmmm, not really that clear. Is it the potential reserves in each? Doesn't say when the conference is that it will be announced at.

[Snapper]

According to the attachment

643 million barrels of Net, Unrisked oil equivalent Prospective Resources held across
3x Conventional PSCs (53 mmboe*)
2x Unconventional MNK PSCs (590 mmboe)
(a further Unconventional study permit is held and under evaluation)

Can someone translate?

[fish]

NZO could be alot more helpful to its Shareholders.
I guess its mainly gas and being prospective extraction will depend on cost extraction,risks and market price/long -term contracts etc.
They sound positive about it but are not giving us sufficient information.

[arjay]

NZO could be alot more helpful to its Shareholders.
I guess its mainly gas and being prospective extraction will depend on cost extraction,risks and market price/long -term contracts etc.
They sound positive about it but are not giving us sufficient information.

I miss the old NZOG. They couldn't find oil if they fell in a puddle of it and management seemed far too focussed on feeding themselves. However, they at least kept us informed. Since Zeta has come on board shareholders appear to have become annoying distractions to be kept at arm's length.

[kizame]

'







"They couldn't find oil if they fell in a puddle of it"

Haha thats hilarious arjay, but they do seem to find gas haha,maybe they are full of it.

[arjay]

'







"They couldn't find oil if they fell in a puddle of it"

Haha thats hilarious arjay, but they do seem to find gas haha,maybe they are full of it.

To be fair, they did discover oil at Tui - although they were drilling what they thought was a gas play.

[digger]

With the KUPE upgrade announced today you can see why NZO has not began the buyback. That being that it could not begin when NZO was in possession of some knowledge that is not yet public knowledge.
Having said that I remain of the belief that a buyback is a poor use of funds when Acquisition is the better way to go. Buybacks just help the sellers that want out. An acquisition would give more reserves to holders for the money spent,
Cheers all.

[Anna Naum]

Todays announcement adds about 4cps of value, but its the lack of direction and HO expense that continues to be a drag on the SP

[Lion]

With long-term Kupe cash flow even more assured now, maybe it's time to think again about a dividend.

[Lion]

Todays announcement adds about 4cps of value, but its the lack of direction and HO expense that continues to be a drag on the SP
Up 4c on ASX this morning!

[Sideshow Bob]

1,136,514 shares bought in the buyback thus far. Can't say I'm a fan of the buyback.....;)

[ziggy415]

1,136,514 shares bought in the buyback thus far. Can't say I'm a fan of the buyback.....;)
thats 1,136,514 shares less that zeta have to pay for when they make a takeover offer.....its a takeover by stealth eh Balance

[fabs]

WHAT WOULD BE INTERESTING TO KNOW IS, WHY THE S/P NEEDS PROPPING UP WITH CONTINUING B/Bs.??
WHEN O/P SEEMS TO BE STEADY AND RISING PLUS THE S/MARKETS ALSO PRETTY FIRM & BUOYANT??

[Wiremu]

Fabs, from McKinsey's April 2016 article entitled "How share repurchases boost earnings without improving returns":-

Improving a company’s earnings per share can improve its return to shareholders. But the contribution of share repurchases is virtually nil.

[fabs]

Fabs, from McKinsey's April 2016 article entitled "How share repurchases boost earnings without improving returns":-

Improving a company’s earnings per share can improve its return to shareholders. But the contribution of share repurchases is virtually nil.

Investing at an attractive return on capital will always create more value than repurchasing shares, but it doesn’t always do so as quickly.

DISCIPLINED MANAGERS as in NZO [ grin ]

WON'T FALL for the short-term benefits at the expense of long-term value creation.

[fish]

Brent oil price over $50 us and general economic fronts favourable.
Buyers strengthening.
I am starting to get the feeling we are back on the way up and should be over 50c soon
I cant see American banks readily lending for more shale investments .
World demand likely to keep increasing

[trader_jackson]

Brent oil price over $50 us and general economic fronts favourable.
Buyers strengthening.
I am starting to get the feeling we are back on the way up and should be over 50c soon
I cant see American banks readily lending for more shale investments .
World demand likely to keep increasing

Would have been nice if they picked up more "distressed assets" rather than carrying out 'pointless' buybacks...

[fish]

Would have been nice if they picked up more "distressed assets" rather than carrying out 'pointless' buybacks...

Agree with your sentiments but NZO is influenced by Zeta and that is probably the point of the buyback-to give them more control.
But that doesnt worry me as I am in for the long haul and minority share holders are protected in law

[digger]

Would have been nice if they picked up more "distressed assets" rather than carrying out 'pointless' buybacks...

You got it in one. Get on with acquisitions before it is too late. Starting to look like supply and demand will balance worldwide by end of this year. Then after that I can see another super cycle in oil. It is still some years or decades before electric vehicles take over in any meanifull way

[neopoleII]

the problem i see with NZO is they are in big trouble of being taken over. the management is NOT being proactive in the interests of ALL shareholders.
the BOARD which directs NZO is directing to the best interests of its shareholders long term........ long term interests are best favored to its biggest shareholder..... zeta.
and its all legal.
thats the way business works........ who has the deepest pockets and time frame.
we have gone from TR and his ELEPHANT hunting to an outside co doing a slow but steady takeover
it seems that NZO has never been a listed company for general investors ..... but a company to be played with by dominant directors or outsiders with deep pockets.....
at the expense of retail investors,,,,,,,, along with years of "feel good positive news" to draw in capital.
good old gun slinger wild west NZX
all legal and above board.
anyway ........ im still hanging in

[fabs]

Well this is of course a Democratic Forum.
Were TRUTH-TELLERS & TRUTH-DENIERS can freely express opinions.

[fish]

Well this is of course a Democratic Forum.
Were TRUTH-TELLERS & TRUTH-DENIERS can freely express opinions.

I get your post but chuckled when i checked on the meaning of deniers.
Maybe a french penny for your thoughts but a thread would also do.

[fabs]

I get your post but chuckled when i checked on the meaning of deniers.
Maybe a french penny for your thoughts but a thread would also do.

Ha,Ha. Good one fish!
Although less than1500 years old, English is such a wonderful and flexible Lingo to get a point across.

[Balance]

Would have been nice if they picked up more "distressed assets" rather than carrying out 'pointless' buybacks...

Distressed assets?

Cannot recall NZOG buying any distressed assets but maybe you are thinking of NZOG feeling distressed after over-paying for assets, and looking at the brave new world of dropping oil prices like a stunned mullet?

[Lion]

the problem i see with NZO is they are in big trouble of being taken over. the management is NOT being proactive in the interests of ALL shareholders. the BOARD which directs NZO is directing to the best interests of its shareholders long term........ long term interests are best favored to its biggest shareholder..... zeta. and its all legal. thats the way business works........ who has the deepest pockets and time frame. we have gone from TR and his ELEPHANT hunting to an outside co doing a slow but steady takeover it seems that NZO has never been a listed company for general investors ..... but a company to be played with by dominant directors or outsiders with deep pockets..... at the expense of retail investors,,,,,,,, along with years of "feel good positive news" to draw in capital. good old gun slinger wild west NZX all legal and above board. anyway ........ im still hanging in Well said, neopole, that's pretty much my feelings too. Only a decent Middle East war could get us back to what I paid. Ah well, you have to take risks in the share market and no-one except complete flukers saw this oil price crash coming. (Oh, except the all-knowing Balance of course)

[notie]

Well said, neopole, that's pretty much my feelings too. Only a decent Middle East war could get us back to what I paid. Ah well, you have to take risks in the share market and no-one except complete flukers saw this oil price crash coming. (Oh, except the all-knowing Balance of course)

Zeta are pretty much in the driving seat now and when the time is right make a low ball offer on the rest of the shares and pretty much screw the smaller investors. Of course some of the senior management and board members have now woken up to what has happened, but they all seem happy to take their pay for doing not a lot and in a few months time it all might be a distant memory. Zeta will be in complete control and fire most of the rest of the staff and bank a sizeable amount of money and a good ongoing dividend stream from Kupe.

Some serious questions need to be asked by shareholders at the next AGM as to what Zeta's intentions are.

[fabs]

Some serious questions need to be asked by shareholders at the next AGM as to what Zeta's intentions are.[/QUOTE]


May be to late by then.

[fish]

Zeta are pretty much in the driving seat now and when the time is right make a low ball offer on the rest of the shares and pretty much screw the smaller investors. Of course some of the senior management and board members have now woken up to what has happened, but they all seem happy to take their pay for doing not a lot and in a few months time it all might be a distant memory. Zeta will be in complete control and fire most of the rest of the staff and bank a sizeable amount of money and a good ongoing dividend stream from Kupe.

Some serious questions need to be asked by shareholders at the next AGM as to what Zeta's intentions are.

Dont you know about minority shareholders rights?
We had great fun going to independent arbitration with TTP and I am looking forward to Zetas takeover offer-if its not fair value I wont be accepting it and arbitration is good for minority shareholders-we all get our say as to what fair value is(ps its not the share price ).

[fabs]

(ps its not the share price ).[/QUOTE]

Partly agree, but its a bit more complex.
For the time being, just ponder the ability of the Operators of NZOs assets [ Genesis, AWEs ]
In there influence & interest leading up to a potential take-over and possible recipients of spoils of such a scenario???
You are a bright enough chap able to read btw. the lines.

[fish]

(ps its not the share price ).

Partly agree, but its a bit more complex.
For the time being, just ponder the ability of the Operators of NZOs assets [ Genesis, AWEs ]
In there influence & interest leading up to a potential take-over and possible recipients of spoils of such a scenario???
You are a bright enough chap able to read btw. the lines.[/QUOTE]


Thank you fabs.
Looking back at TTP I certainly learnt about the back room deals going on-there were so many-even ACC got in on the act.
Trust no one.
But minority shareholders rights are enshrined in the companies act and there is no way I will let Zeta get away without paying a fair and reasonable price for my shares.
TTP/SEA tried all sorts of tactics-even appealed and went to the high court.It was exciting and fun-I would relish playing this game again.They even had to pay our costs-including my time!

[digger]

Partly agree, but its a bit more complex.
For the time being, just ponder the ability of the Operators of NZOs assets [ Genesis, AWEs ]
In there influence & interest leading up to a potential take-over and possible recipients of spoils of such a scenario???
You are a bright enough chap able to read btw. the lines.


Thank you fabs.
Looking back at TTP I certainly learnt about the back room deals going on-there were so many-even ACC got in on the act.
Trust no one.
But minority shareholders rights are enshrined in the companies act and there is no way I will let Zeta get away without paying a fair and reasonable price for my shares.
TTP/SEA tried all sorts of tactics-even appealed and went to the high court.It was exciting and fun-I would relish playing this game again.They even had to pay our costs-including my time![/QUOTE]

Fish as you know you can count me in. Have been to court [big and small] and won about 80% of the time.
Maybe NZO spending its money on buyback is indeed a sign that Zeta want a cheap takeout,well a cheap % holding anyways.

[Balance]

Thank you fabs.
Looking back at TTP I certainly learnt about the back room deals going on-there were so many-even ACC got in on the act.
Trust no one.
But minority shareholders rights are enshrined in the companies act and there is no way I will let Zeta get away without paying a fair and reasonable price for my shares.
TTP/SEA tried all sorts of tactics-even appealed and went to the high court.It was exciting and fun-I would relish playing this game again.They even had to pay our costs-including my time!

Fish as you know you can count me in. Have been to court [big and small] and won about 80% of the time.
Maybe NZO spending its money on buyback is indeed a sign that Zeta want a cheap takeout,well a cheap % holding anyways.[/QUOTE]

For years, TR and his cronies ran NZOG to their own agenda. Shareholders happily took in everything they said until NZOG blew up.

Why the difference towards Zeta who is trying at least to do the right things so far?

[fish]

Balance-Have you changed your tune?
Time for fabs to play a few chords?

[fish]

Thank you fabs.
Looking back at TTP I certainly learnt about the back room deals going on-there were so many-even ACC got in on the act.
Trust no one.
But minority shareholders rights are enshrined in the companies act and there is no way I will let Zeta get away without paying a fair and reasonable price for my shares.
TTP/SEA tried all sorts of tactics-even appealed and went to the high court.It was exciting and fun-I would relish playing this game again.They even had to pay our costs-including my time!

Fish as you know you can count me in. Have been to court [big and small] and won about 80% of the time.
Maybe NZO spending its money on buyback is indeed a sign that Zeta want a cheap takeout,well a cheap % holding anyways.[/QUOTE]

digger should an attempt be made to disadvantage minority shareholders / unfair takeover etc the companies act allow us to go to independent arbitration so we avoided costs and got our say and a sound settlement.
TTP/Sea were miffed with the arbitration and went to the high court.They were bound to lose as the arbitrators decision is final so ended up paying more-we just employed a Queens council who had a day in court and then a final judgement and all over with extra costs and interest for TTP to pay

I havnt been following NZO closely-whts your valuation of the SP?

[Balance]

Balance-Have you changed your tune?
Time for fabs to play a few chords?

Nope - simply pointing out the obvious.

There are/were posters who believed every word uttered by the previous management and vigorously defended their dismal performance over the decades, but now are suddenly vigilant against exploitation by Zeta.

Good for a laugh really.

[fish]

Balance it would be so fab if we had more laughs.
Laughs that dont hurt people are so good.
Take notie of this

[Lion]

Oh dear, is Balance being nasty again fish?
I wouldn't know, I've had him on ignore for years.

[fish]

Oh dear, is Balance being nasty again fish?
I wouldn't know, I've had him on ignore for years.

Well I really dont know if he is becoming more mellow with age.
He actually said Zeta was doing the right things and later suggested I was a bright chap!
Im feeling quite chuffed.

[digger]

Well I really dont know if he is becoming more mellow with age.
He actually said Zeta was doing the right things and later suggested I was a bright chap!
Im feeling quite chuffed.


Well when he says Digger is a bright chap you will know he is well and truely over the mellow hill.

[Balance]

Well when he says Digger is a bright chap you will know he is well and truely over the mellow hill.

Ah me ole mate Digger - we have had our disagreements but always respectful vigorous discussions

from the gas field which is Kupe to the condensate columns of Tui to the umpteen number of dry holes dug and drilled,

from the hot dry sands of Tunisia to the humid shark infested seas of Indonesia,

from the great promise of coal fortunes to the ritualistic P Pilate washing of hands by AK when Pike blew up and killed 29 miners

and through them all, NZOG delivered and continues to deliver ....










....heaps and heaps of benefits and goodies for its directors, management and executives but crumbs aplenty for its loyal and unquestioning shareholders! :D

[fish]

I thought balance you were just saying the opposite-Zeta is doing a good job,why are shareholders questioning etc.
We have new management.new independent director (a professor with right credentials and female).
Times do change

[digger]

Ah me ole mate Digger - we have had our disagreements but always respectful vigorous discussions

from the gas field which is Kupe to the condensate columns of Tui to the umpteen number of dry holes dug and drilled,

from the hot dry sands of Tunisia to the humid shark infested seas of Indonesia,

from the great promise of coal fortunes to the ritualistic P Pilate washing of hands by AK when Pike blew up and killed 29 miners

and through them all, NZOG delivered and continues to deliver ....










....heaps and heaps of benefits and goodies for its directors, management and executives but crumbs aplenty for its loyal and unquestioning shareholders! :D

Good day to you to Balance. It was not all peaches and cream. The thing I did not like about you the most is that you turned to be right all too often. The world was going your way with the over supply of tooo much oil. It is slowly correcting so maybe in a year or two I can have a moment in the sun.

In just one spot I was one of the leaders that helped turn the company away from Tunisa along with a few of the other larger holders of the company.In fact from the outset I opposed David Sailsbury going there in the first place.Anyways the directors decided to leave Tunisa rather than put all our money into it. What a money wasting tragedy that would have been.
But I do not get my own way often enough. Right now I want an acquisition not a buy back.

[fish]

Good day to you to Balance. It was not all peaches and cream. The thing I did not like about you the most is that you turned to be right all too often. The world was going your way with the over supply of tooo much oil. It is slowly correcting so maybe in a year or two I can have a moment in the sun.

In just one spot I was one of the leaders that helped turn the company away from Tunisa along with a few of the other larger holders of the company.In fact from the outset I opposed David Sailsbury going there in the first place.Anyways the directors decided to leave Tunisa rather than put all our money into it. What a money wasting tragedy that would have been.
But I do not get my own way often enough. Right now I want an acquisition not a buy back.

Their has to firesales out there-so many companies who have borrowed too much and will be forced to sell some of their production to be able to pay the banks.
NZO is so well-placed to take advantage of this-spare money in the bank and good cashflow.
Now is the time NZO management need to get earning their money,find and buy these assets,

[fish]

PS when the NZO sp is so well below value I have no problem with buying-bak shares-as long as they cant find better value elsewhere-which i hope they are really trying to do.

[fabs]

[QUOTE=fish;623552]PS when the NZO sp is so well below value.

Well many others apart from myself, have asked over some period now what the share ought to be worth at present.
All very well to indulge in wishful thinking and some so called experts opinions.
The reality is it would be even lower if it was not for the B/B and given that profit is not that hot atm plus reserves slowly declining.
It may very well be about right where it is, as O/Price not likely to go anywhere [ major war, game changer??? ] maybe, heaven forbid.
Experts??? in those matters opining, given the no. of producers that have suspended production but which could come on song again,together with shale oil producers above 50 dollars.
Really would like to see a breakdown of what a realistic value S/Price should be.
Also what about AWEs performance last 4 months????

[Balance]

Good day to you to Balance. It was not all peaches and cream. The thing I did not like about you the most is that you turned to be right all too often. The world was going your way with the over supply of tooo much oil. It is slowly correcting so maybe in a year or two I can have a moment in the sun.

In just one spot I was one of the leaders that helped turn the company away from Tunisa along with a few of the other larger holders of the company.In fact from the outset I opposed David Sailsbury going there in the first place.Anyways the directors decided to leave Tunisa rather than put all our money into it. What a money wasting tragedy that would have been.
But I do not get my own way often enough. Right now I want an acquisition not a buy back.

Hope you are having a lovely long Queen's Birthday weekend Digger.

Tunisia would have indeed been a disaster - never mind the fact that DS was also busy looking at the former Soviet republics as well! So good on you and the others involved who stopped that from taking root and growing further!

[fish]

[QUOTE=fish;623552]PS when the NZO sp is so well below value.

Well many others apart from myself, have asked over some period now what the share ought to be worth at present.
All very well to indulge in wishful thinking and some so called experts opinions.
The reality is it would be even lower if it was not for the B/B and given that profit is not that hot atm plus reserves slowly declining.
It may very well be about right where it is, as O/Price not likely to go anywhere [ major war, game changer??? ] maybe, heaven forbid.
Experts??? in those matters opining, given the no. of producers that have suspended production but which could come on song again,together with shale oil producers above 50 dollars.
Really would like to see a breakdown of what a realistic value S/Price should be.
Also what about AWEs performance last 4 months????

Maybe I should have qualified it by saying it appears well below value based on cash in bank,free cash flow and kupe known reserves increasing .Kupe looks like it will produce for a long-time and this is where the profit is being made.Tui is running out and will probably finish soon

[digger]

Hope you are having a lovely long Queen's Birthday weekend Digger.

Tunisia would have indeed been a disaster - never mind the fact that DS was also busy looking at the former Soviet republics as well! So good on you and the others involved who stopped that from taking root and growing further!

The other Soviet republic was Poland. DS wanted us to develop there tight oil which he was sure was their. We did not and when it was finally drilled by others it was dry. Another DS disaster stumpted,and no thanks to DS.

[fish]

The other Soviet republic was Poland. DS wanted us to develop there tight oil which he was sure was their. We did not and when it was finally drilled by others it was dry. Another DS disaster stumpted,and no thanks to DS.

Ds was a real problem.
Just before PRC exploded I spend an evening talking to him.
I asked him why wasnt he selling it-he was -just no offers at his price.
So I asked him waht he knew about coal-nothing!
Then he told me about Poland!
But the oil price was strong,cash flow amazing and life looked rosy.
Balance told us otherwise but would I listen?

[fabs]

Yes nearly from the beginning on this forum posted that D/S stood for Doctor of Spin.
Not very p/c but hey a spade is a spade.
The present HOPELESS lot still at the helm today and together with some illustrious contributors to this forum thought the world of him. [ He's done very well out of NZO ]
No wonder then that the money still flows into the wrong pockets.
Maybe they learned how to make easy money since then.

[Balance]

Ds was a real problem.
Just before PRC exploded I spend an evening talking to him.
I asked him why wasnt he selling it-he was -just no offers at his price.
So I asked him waht he knew about coal-nothing!
Then he told me about Poland!
But the oil price was strong,cash flow amazing and life looked rosy.
Balance told us otherwise but would I listen?

Monkey sees, monkey does fish. DS was doing what TR and his fellow directors and executives were doing for decades - squandering opportunities and shareholders' wealth.

The answer was and is to bring in real management and real expertise which the company seemed incapable of doing - for the obvious reason that good and great people do not work for clowns.

Here's hoping for the sake of NZOG that Zeta will do a better job. Really up to NZOG shareholders to hold them to account at every turn.

[Carpenterjoe]

I suppose this is a cheap way of securing a few million shares for NZO


http://www.cuenrg.com.au/irm/PDF/2139/UnmarketableParcelShareSaleFacility

[notie]

The explorers from NZ?

NZOG recently laid off 20% of it's staff including most of the geological team, so can they still call themselves the explorers from NZ.
Even worse was the fact they didn't trim any of the management team, so even more of a case of too many chiefs and not enough indians.

Maybe the fiddlers and procrastinators from NZ (spending shareholders money on fat management salaries) might be a better title

[Carpenterjoe]

Cash increase of 13mil for the last 12 months. not bad, for bad times. Back up near the 100m mark, cues cash slowly dwindling. Surly this is the most under vauled stock on the nzx?

[trader_jackson]

Cash increase of 13mil for the last 12 months. not bad, for bad times. Back up near the 100m mark, cues cash slowly dwindling. Surly this is the most under vauled stock on the nzx?

I would agree that it is under valued by a fair way... positive cash flow and everything and yet the share price is the lowest in a decade... with the many NZX stocks being arguably expensive, I'm surprised this one has seemingly slipped under the radar

[Balance]

Cash increase of 13mil for the last 12 months. not bad, for bad times. Back up near the 100m mark, cues cash slowly dwindling. Surly this is the most under vauled stock on the nzx?

Yup - that's what they were saying 2, 5, 10, 15 years ago. And the company continues to blow shareholders' wealth into the black holes management and directors seem to enjoy digging.

The only public NZ listed company I know which contributed in a big way to the deaths of 29 people, and did a Pontius Pilate on the families of the dead moners.

Karma.